Correlation Between Agricultural Bank and Guangzhou Fangbang
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By analyzing existing cross correlation between Agricultural Bank of and Guangzhou Fangbang Electronics, you can compare the effects of market volatilities on Agricultural Bank and Guangzhou Fangbang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Agricultural Bank with a short position of Guangzhou Fangbang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Guangzhou Fangbang.
Diversification Opportunities for Agricultural Bank and Guangzhou Fangbang
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Guangzhou is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Guangzhou Fangbang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Fangbang and Agricultural Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Agricultural Bank of are associated (or correlated) with Guangzhou Fangbang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Fangbang has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Guangzhou Fangbang go up and down completely randomly.
Pair Corralation between Agricultural Bank and Guangzhou Fangbang
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.52 times more return on investment than Guangzhou Fangbang. However, Agricultural Bank of is 1.91 times less risky than Guangzhou Fangbang. It trades about 0.43 of its potential returns per unit of risk. Guangzhou Fangbang Electronics is currently generating about 0.02 per unit of risk. If you would invest 481.00 in Agricultural Bank of on September 27, 2024 and sell it today you would earn a total of 50.00 from holding Agricultural Bank of or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Guangzhou Fangbang Electronics
Performance |
| Timeline |
| Agricultural Bank |
| Guangzhou Fangbang |
Agricultural Bank and Guangzhou Fangbang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Guangzhou Fangbang
The main advantage of trading using opposite Agricultural Bank and Guangzhou Fangbang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Guangzhou Fangbang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangzhou Fangbang will offset losses from the drop in Guangzhou Fangbang's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. China Construction Bank |
| Guangzhou Fangbang vs. Industrial and Commercial | Guangzhou Fangbang vs. China Construction Bank | Guangzhou Fangbang vs. Agricultural Bank of | Guangzhou Fangbang vs. Bank of China |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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